You might recall that the deduction for mortgage insurance premiums died as of Dec 31, 2017. You weren’t allowed to claim those premiums as part of your 2018 itemized deductions. Many people missed this because the doubling of the standard deduction (from $6000 to $12000 for single filers and from $12000 to $24000 for joint filers) resulted in a situation where the law change had no effect on their refund.
However, a significant percentage of taxpayers lost out on that deduction in 2018 which was painful as these premiums were typically several thousand dollars.
Well, it’s good news on the tax front. Some of the deductions that were lost at the end of 2017 are back for the 2019 year and were enacted retroactively back to the beginning of 2018. Thus, if you itemized in 2018 and didn’t take the deduction, you can amend your 2018 return and claim that additional refund. The deduction is also available at least for both 2019 and 2020.
We will be checking last year’s returns for all of our clients to see if they can benefit from this. If so, we will amend and get them some extra money.
Current law says that to receive a refund from an amended return, it should be filed 3 years from the due date or the date originally filed, whichever is sooner. So, if you are eligible for this refund, you have time to make the claim.
If you think you might benefit from this but are unsure, give us a call. We can quickly look at a couple of items from your 2018 tax return and let you know if there would be any benefit and how much it would be. We can amend that return for you if you like. Give us a call at 303-745-3962.